PENSION FROM LIC JEEVAN SURAKSHA

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2009 I want to confirm whether pension received from lic jeevan suraksha plan is taxable or not.
That particular adjustment was asked in pcc nov 09 exam. Under sec 10(10A) it is written that any commuted pension received from lic is exempt.
But it was not clearly mentioned in the question whether the pension was commuted or not.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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20 December 2009 As per section 80CCC pension received from any annuity plan under
superannuation scheme of LIC or any other insurer will be taxable.
http://www.outlookmoney.com/scripts/TAX003C1.asp?type=Rebates&lst_rebates=LIC%20premium

Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2010 but as per section 10(23aab), any income by way of pension fund set up by lic is exempted income.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 ### **Taxability of Pension from LIC Jeevan Suraksha**

The pension received from LIC Jeevan Suraksha can be subject to different tax treatments depending on whether it is in the form of a commuted or non-commuted pension. Here’s a detailed explanation:

#### **1. Pension Received from LIC Jeevan Suraksha:**

- **Non-Commuted Pension:** Pension received under LIC Jeevan Suraksha, if it is in the form of a regular annuity or pension, is generally taxable under the head "Income from Other Sources." This is because it is considered as income in the hands of the recipient.

- **Commuted Pension:** Under Section 10(10A) of the Income Tax Act, any commuted pension received by an individual is exempt from tax to a certain extent. This exemption is applicable to pensions commuted under certain conditions and does not cover all types of pension.

#### **2. Detailed Tax Provisions:**

- **Section 10(10A) - Commuted Pension:**
- **Commuted Pension Exemption:** Under Section 10(10A) of the Income Tax Act, a commuted pension is partially or fully exempt from tax, depending on the type of pension (whether it is received by a government employee or a non-government employee).
- **For Government Employees:** The entire amount of commuted pension is exempt from tax.
- **For Non-Government Employees:** The exemption is limited to a certain amount. The exempt portion is the lesser of:
- One-third of the commuted pension (in case of pension received in the form of a lump sum).
- The amount of commuted pension actually received.

#### **3. Clarification for LIC Jeevan Suraksha:**

- **LIC Jeevan Suraksha Pension (Non-Commuted):** If the pension received is in the form of regular annuity payments and not commuted, then it is taxable as per the prevailing income tax slabs under "Income from Other Sources."

- **LIC Jeevan Suraksha Pension (Commuted):** If the pension received is commuted (meaning the individual has opted for a lump sum payment in lieu of future periodic pension payments), then it may be eligible for exemption under Section 10(10A), provided it meets the criteria specified.

#### **4. PCC Nov 09 Exam Context:**

- **Unspecified Commutation:** In exam scenarios where the type of pension (commuted or non-commuted) is not clearly specified, it is generally safer to assume that the pension is taxable unless additional context indicates otherwise.

### **Summary:**

- **Regular Pension (Non-Commuted):** Taxable under "Income from Other Sources."
- **Commuted Pension:** Exempt under Section 10(10A) subject to specific conditions and limits.

For accurate tax treatment, particularly in exam situations or practical applications, it is crucial to verify the nature of the pension (commuted or non-commuted) and apply the relevant tax provisions accordingly. If you have further questions or specific cases, consulting with a tax advisor or referring to official guidance from the Income Tax Department can provide additional clarity.